UpTrajectory Review

Jawan Simpson, a 37-year-old Michigan CPA and tax preparer, has pleaded guilty to defrauding the Paycheck Protection Program of more than $2 million, according to federal officials. The PPP, launched in the spring of 2020 as the pandemic shuttered businesses across the country, was designed to provide forgivable loans to small employers who kept workers on payroll. What Simpson's case illustrates is how quickly a program built on self-attestation and speed became a target for professionals who were supposed to be the trusted intermediaries — the very people small business owners turn to when they need help navigating federal relief.

For small-business operators, this story lands close to home. Most owners who applied for PPP funds did so with the help of a CPA, bookkeeper, or tax preparer, and many relied on that professional's judgment about eligibility, payroll calculations, and documentation. A case like this erodes that trust. It also raises the uncomfortable question of whether some legitimate borrowers were crowded out or flagged for extra scrutiny because fraudsters were flooding the system with fabricated applications. If you used a preparer for your PPP loan, this is a reminder to review your own file and make sure every number you submitted can be backed up.

What stands out here is not just the dollar figure but the professional credential attached to it. Simpson was a licensed CPA — someone bound by ethics rules and fiduciary responsibility — not a fly-by-night scammer. Federal prosecutors have made clear since 2021 that PPP fraud enforcement would extend beyond obvious bad actors to include accountants, attorneys, and financial advisors who exploited the program. That threat has now materialized in a courtroom. The guilty plea suggests the evidence was strong enough that Simpson chose not to fight the charges, which typically means a cooperation agreement or a straightforward path to sentencing.

The downstream effects ripple in several directions. Honest CPAs and tax preparers face higher compliance burdens and more skeptical clients as a result of cases like this. Borrowers who worked with Simpson or firms like his may find their own loans under review, even if they believed their applications were legitimate. And the SBA's forgiveness process — already slow and opaque for many — becomes more cautious, meaning clean borrowers wait longer. There is also a reputational cost for the profession: every headline about a fraudulent CPA makes it harder for the thousands of ethical practitioners who serve small businesses to earn trust.

Watch for Simpson's sentencing, which will signal how aggressively courts are treating PPP fraud by licensed professionals — expect prison time and restitution orders, not just fines. If you are a business owner who used a third-party preparer for PPP or EIDL applications, now is the time to audit your own paperwork: confirm that payroll figures match your tax filings, that the entity listed on the application is the one that actually employed workers, and that forgiveness documentation is complete. If something looks off, consult an independent CPA before the SBA or DOJ comes asking. The window to self-correct is far more forgiving than the one that closes after an indictment.

“Jawan Simpson, 37, a tax preparer and CPA, defrauded the Small Business Administration's Paycheck Protection Program of more than $2 million.” — CPA Practice Advisor

Takeaway: Audit your PPP loan file now — if your preparer cut corners, you own the liability, and self-correction beats an indictment.